BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup includes stories about BlackRock’s IBIT launch in Chile, Nubank’s partnership with Lightspark, Bolivia’s cryptocurrency ban revoke, and more.

BlackRock Launches IBIT on Santiago Stock Exchange in Chile

BlackRock has introduced its iShares Bitcoin Trust (IBIT) to the Santiago Stock Exchange in Chile, managed by BCI Corredores de Bolsa. This launch allows Chilean investors to participate in Bitcoin investments at an institutional level.

Chile now follows Brazil in the region, where BlackRock launched the same ETF earlier in March. According to GTD, 74% of Chileans recognize Bitcoin as the leading cryptocurrency in the market. The ETF, which began trading on June 27, benefits from BlackRock’s technological expertise and its management of approximately 1,300 other ETFs.

This launch fills us with pride, as it is in line with the long history of innovation driven by BlackRock in the financial markets. Now, investors in Chile will have an accessible and efficient digital asset to include in their portfolios, backed by the extensive experience in risk management that our iShares ETFs have,” said Silvia Fernández, the Country Head of BlackRock Chile.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

IBIT has established itself as the world’s largest Bitcoin ETF, with over $20 billion in assets since it began trading in January 2024. It was also the fastest ETF to reach $10 billion in assets in history.

Bolivia Authorizes Cryptocurrency Use, Revoking Historic Ban

Bolivia has officially lifted its ban on cryptocurrencies, authorizing their use through Electronic Payment Instruments (IEP). Edwin Rojas, the president of the Central Bank of Bolivia, announced this decision, marking a massive shift in the country’s approach to digital commerce.

The reversal of the 2020 Resolution 144, which previously restricted cryptocurrency transactions, involved the Financial Investigations Unit and the Financial System Authority. Despite this change, the Boliviano remains the only legal tender.

The Central Bank stresses that all risks associated with virtual assets are the user’s responsibility. It highlights that these assets are not considered legal money and are not obligatory for payments. The Central Bank is committed to adapting existing regulations and launching educational campaigns.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

This initiative aligns with recommendations from the Latin American Financial Action Task Force. They suggested regulating virtual asset services to meet new financial realities and the expanding use of blockchain technologies.

The recent move modernizes Bolivia’s financial system and opens doors to new digital commerce opportunities and financial inclusion, provided that public education manages the transition responsibly.

Santander Brazil Expands Crypto Trading to Retail Customers via Toro Platform

Santander, the multinational banking giant, has recently announced that it will start offering cryptocurrency trading services in Brazil. Starting this week, Santander’s Brazilian investment platform, Toro, will offer its retail customers access to Bitcoin and Ethereum.

Previously, these cryptoassets were available only to the bank’s private clients through ETFs. This move follows similar offerings by other Brazilian banks such as Itaú, Nubank, Inter, and BTG Pactual.

Toro founder and CEO João Resende explains that negotiations begin with offering the two largest digital currencies to selected clients with an appropriate risk profile for the product.

“The product will be aimed at clients with an aggressive risk profile. Gradually, the new service will be rolled out to the broker’s entire base of more than one million active clients.” Resende says Toro is considering offering other digital currencies in addition to tokenized assets. “It’s a first step we are taking,” he noted.

Read more: Crypto vs. Banking: Which Is a Smarter Choice?

According to a report by Valor Econômico, the success of this initiative in Brazil might lead to its expansion across other Santander branches worldwide. Santander, also participating in the CBDC project known as Drex, recently conducted the first transaction using Anonymous Zether. The solution, developed by Consensys, allows users to conceal transaction amounts and the parties’ identities using cryptographic proofs. 

Costa Rican Authorities Unveil Bitcoin Money Laundering Scheme

Costa Rican authorities have dismantled a sophisticated money laundering scheme involving cryptocurrencies, including Bitcoin. After a two-and-a-half-year investigation, police arrested 36 individuals on Tuesday. Among them were judges, lawyers, and two Spanish nationals identified as the ringleaders.

Randall Zúñiga, director of the Judicial Investigation Agency (OIJ), explained that the gang stole properties from Costa Rican residents. They then legitimized these assets through cryptocurrency purchases. In one instance, the organization moved $13 million in Bitcoin in a single day, highlighting the scale of its operations.

“There is a whole team dedicated to cryptocurrencies. In one day, they made a $13 million transaction in bitcoins. We have identified 25 properties, but over 100 have been stolen. Conversations suggest they have taken over 300 properties, with one valued at $30 million. This constitutes a multi-million dollar fraud,” Zúñiga stated.

Read more: Top 9 Safest Crypto Exchanges in 2024

The operation involved around 500 OIJ agents and conducted 47 raids nationwide. Lawyers, notaries, public officials, and five traffic officers were arrested. They face charges of registration fraud, ideological falsehood, and money laundering.

This case in Costa Rica mirrors a similar incident in Venezuela. The Scientific, Criminal, and Criminalistic Investigations Corps (CICPC) captured a criminal operating an illicit cryptocurrency exchange in Chacao, Miranda.

The detainee, Gabriel Bello, enticed victims with offers of currency exchange and cryptocurrencies at affordable prices. He then failed to deliver the promised returns. Bello, who was wanted for continuous swindling and other crimes, is now in the custody of the Public Prosecutor’s Office.

Colombia’s Usiacurí Municipality Adopts Bitcoin

The small Colombian town of Usiacurí, home to over 10,000 residents, has embraced cryptocurrencies like Bitcoin, USDT, and Tron for tourist transactions. This initiative mirrors El Salvador’s 2021 adoption of Bitcoin and aligns with Colombia’s high rate of Bitcoin utilization. President Gustavo Petro has even explored cryptocurrencies as potential solutions for governmental issues.

This adoption is part of the “Distrito Crypto” project, a collaboration between Usiacurí’s municipality, Universidad de la Costa (CUC), Certika, and Corporación CienTech, exclusive to Usiacurí in the Atlántico department. The program aims to facilitate cryptocurrency transactions for foreign tourists across local hotels, shops, and restaurants.

“The participation of the Universidad de la Costa was fundamental throughout the process, since through its teachers and researchers have been strengthening the research line of blockchain and its applications, as is this tool that allowed us to turn Usiacurí into the first municipality with Cryptocurrency District, generating more sales in its tourism and hotel sector,” explained CienTech.

Read more: Who Owns the Most Bitcoin in 2024?

Further enhancing Colombia’s appeal to crypto investors, the recent introduction of Worldcoin’s World ID verifications in Bogotá and Medellín positions the nation as a hub for digital identity solutions. This system serves as a “digital passport of humanity,” designed to verify unique individual identities securely, meeting growing demands for digital services verification.

Nubank Partners with Lightspark to Integrate Lightning Network in Brazil

Nubank has partnered with Lightspark to deploy the Bitcoin Lightning Network on its Brazilian platform. This alliance will explore potential synergies and development opportunities, with more specific details to be announced later.

Lightspark will provide Nubank with an enterprise-grade gateway to the Lightning Network, facilitating reliable, near real-time transactions for Bitcoin and fiat currencies at reduced costs.

“The partnership with Lightspark, which has developed an excellent technical solution for Bitcoin’s Lightning network, is another step in Nubank’s mission to provide the best solutions for our customers and strengthen our long-term relationship with them. The future integration of Lightning underscores Nubank’s ongoing mission to deliver more efficient services faster and at lower costs through blockchain technology,” stated Thomaz Fortes, CEO of Nubank Crypto.

Read more: The Best Bitcoin Lightning Network Wallets In 2024

The collaboration will allow Nubank’s teams to enhance the end-to-end customer experience by focusing on product innovation without the burden of managing a large-scale Lightning deployment. This integration represents a significant advancement in the adoption and efficiency of digital financial transactions, promising a faster, more affordable, and secure service for Nubank’s customers. It’s a significant milestone for the Lightning Network, expected to greatly increase its overall network utilization.

Argentina and Venezuela Face Hyper AI Platform Controversy

The Hyper AI platform, renowned for integrating advanced technologies like AI and blockchain into a metaverse, has recently suspended user withdrawals, alleging a system update. This action has alarmed its investors in Venezuela and caused uncertainty in Argentina. The platform is now accused of operating like a Ponzi scheme, leading many users to organize a protest to file formal complaints with the public prosecutor’s office in Venezuela.

Social media and cryptocurrency forums are buzzing with reactions as users in Venezuela express their frustration over the lack of transparency, accusing Hyper AI of employing common Ponzi scheme tactics. Approximately 20,000 users in Los Teques, El Jarillo, and La Colonia Tovar are reportedly affected. On Wednesday, June 26, a group will officially approach the Superior Prosecutor’s Office of Miranda to denounce the platform.

“I entered in the month of February, I started with the minimum investment of 50 dollars. For a while I recovered something, but for example my son borrowed money, he entered with $5,000 and of course he lost all of that. I know many people who sold houses, cars, who were excited because this platform was supposed to last until next year”, Carlos Chavez told the local Venezuelan media Diario Avance.

Read more: 15 Most Common Crypto Scams To Look Out For

The controversy is not confined to Venezuela; it has also touched Argentina. Users have voiced their dissatisfaction and are seeking answers to the ongoing crisis.

“My experience was awful, I entered through my nephew who was also scammed. I invested almost 900 dollars and I could not withdraw anything and it was horrible to know that they played with us like that”, Gabriela Romando told Argentinean media El Diario del Sur.

The situation that all Hyper AI users are going through has exacerbated the distrust in investments related to emerging technologies in the region. This saga is reminiscent of other recent financial collapses of digital platforms such as FTX, BTR, Solesbot, and CowCoin.

As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. From BlackRock’s Bitcoin ETF launch in Chile to Brazilian Nubank’s partnership with Lightspark, Latin America is positioning itself as a key player in the tech world. Stay tuned for more updates and insights in next week’s roundup.

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The US Treasury has revealed new regulations requiring crypto custodial brokers to report their users’ transactions to the Internal Revenue Service (IRS).

Starting in 2026, these brokers must report gross proceeds on digital asset sales from 2025. They must also report tax-related information on certain digital assets in 2027 for the previous year.

IRS Unveils Final Draft of Crypto Rules

The new regulations target custodial digital asset trading platform operators, hosted wallet providers, digital asset kiosks, and specific digital asset payment processors (PDAPs). The IRS said these brokers cover the majority of digital asset transactions and capture a large number of taxpayers.

Brokers must disclose movements and gains of customer assets, including stablecoins like USDT and high-value NFTs. They must also report the fair market value of tokenized real-world assets in real estate transactions. This regulation provides crypto investors with a simple 1099 form, similar to that of banks and brokers.

Read more: How to Reduce Your Crypto Tax Liability: A Comprehensive Guide

This move is a significant step forward in crypto taxation to curb tax evasion. IRS Commissioner Danny Werfel emphasized that these regulations are crucial for improving tax compliance among high-income individuals. He furthered that the rules would arm taxpayers with the necessary information to simplify their tax reporting process.

“We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets. Our research and experience demonstrate that third-party reporting improves compliance. In addition, these regulations will provide taxpayers with much needed information, which will reduce burden and simplify the process of reporting their digital asset activity,” Werfel stated.

Meanwhile, decentralized exchanges and self-custody wallets are not subject to the new reporting rules. Instead, the IRS said it was still reviewing industry comments and needed more time to study the decentralized networks.

“The final regulations do not include reporting requirements for brokers that do not take possession of the digital assets being sold or exchanged. These brokers are commonly called decentralized or non-custodial brokers. The US Treasury Department and the IRS intend to provide rules for these brokers in a different set of final regulations,” the IRS explained.

Read more: The Ultimate US Crypto Tax Guide for 2024

Industry advocacy groups like The Blockchain Association have welcomed the IRS’s decision to study DeFi further. The group’s Head of Legal, Marisa Tashman Coppell, said the regulator’s move showed that the industry’s collective voice continues to positively impact Washington.

Similarly, Jake Chervinsky, a well-known crypto lawyer, described this move as “an unexpected but huge policy win for DeFi.”

“The proposed rule implementing the infrastructure bill’s tax provisions would have required non-custodial DeFi front-ends to KYC users. Treasury just finalized the rule but only for custodians, leaving DeFi for another day,” he remarked.

Ethereum (ETH) has been experiencing volatility mainly due to its alignment with broader market trends.

Despite the approval of spot ETH ETFs, the event has not yet impacted the price. However, this could change in the near future.

Do Ethereum ETFs Have a Bright Future?

Spot ETF movements might substantially impact Ethereum’s price in the coming few months. Earlier this week, the US Securities and Exchange Commission (SEC) approved listing spot ETFs by the beginning of July. This has increased investors’ expectations massively.

“We expect the net inflows into ETH ETFs to be 20-50% of the net inflows into BTC ETFs over the first five months, with 30% as our target, implying $1 billion/month of net inflows,” Galaxy Research Team’s Vice President Charles Yu stated.

However, this optimistic forecast does not look entirely realistic. To put it into perspective, spot Bitcoin ETFs have only seen $857 million in inflows as of June 21, despite holding 84% of the entire ETF market share, with futures ETFs accounting for just 14%. This raises doubts about whether spot Ethereum ETFs will achieve $1 billion in monthly inflows.

Read more: Ethereum ETF Explained: What It Is and How It Works

The uncertainty regarding the success of ETH ETFs in a relatively bearish market could also lead to a surge in market makers’ premiums. Gamma distribution risk, involving the sensitivity of options to price changes, makes market makers adjust their strategies. With the added uncertainty of ETH ETFs, they are likely to raise premiums to cover potential extreme price swings. 

“ETH can still obtain effective support from market makers hedging on the downward path. As one of the solutions to the above-mentioned gamma distribution risk, market makers have also slightly raised their pricing for tail risk. Due to the additional uncertainty brought by ETH ETFs, the pricing for ETH tail risk is relatively high,” Griffin Ardern, Head at BloFin Research & Options, told BeInCrypto.

Put simply, market makers could charge more to account for the chance that the price of ETH will be affected by something very unusual and extreme. This means investors need to pay extra to hedge their bets, which can discourage excessive speculation and reduce volatility.

Read More: How to Invest in Ethereum ETFs?

Despite the fact the active risk management can help stabilize its price by providing support and mitigating significant price drops, Ethereum’s price might struggle to benefit immediately from the launch of spot ETFs.

ETH Price Prediction: Eyeing New Highs

Ethereum’s price of $3,395 is far from establishing a new all-time high. The second-largest cryptocurrency rallied by over 30% following the approval of spot ETH ETFs, but nearly half of this was wiped out when ETH fell by 13% at the beginning of the month. The uncertainty surrounding the launch drove the price down, along with the bearish broader market cues.

The situation could shift as the market approaches the launch of ETFs. Bitcoin’s price started to trend upward following the introduction of its spot ETFs, and a similar outcome is anticipated for Ethereum.

Should Ethereum’s price manage to capitalize on the potential bullishness and rise to flip $3,829 into support, it would have managed to flip the 61.8% Fibonacci Retracement into support. This line, also known as the bull market support floor, would translate to ETH’s further gains.

Read More: Ethereum (ETH) Price Prediction 2024/2025/2030

While a new all-time high is still far away, ETH will at least have a shot at trying its hand at breaching $4,000. A successful breach will be key in pushing the altcoin further upwards.

But if this fails to happen, Ethereum’s price would be susceptible to remaining consolidated under $4,000. The likely support level could stand between $3,700 and $3,800. Losing this would invalidate the bullish thesis.